UT FLEX Flexible Spending Plans

RESOURCES

CONTACT

PayFlex CUSTOMER SERVICE (866) 887-3539

Fax: (877) 230-4283

Benefits-eligible active employees may enroll in UT FLEX flexible spending accounts (FSAs). FSAs allow you to set aside money from your earnings before taxes are withheld to put into an account used to pay certain out-of-pocket health care expenses with the Health Care Reimbursement Account (HCRA) or qualifying dependent day care expenses with the Dependent Care Reimbursement Account (DCRA). This reduces the amount you pay in taxes and increases your spendable income. If you are enrolled in the HCRA, you also have the added convenience of the UT FLEX Debit Card to pay for eligible expenses at the point of service.

In most cases you save about 30% on your Federal taxes. The average tax savings for a person earning $50,000 who contributes $2,000 into an FSA account is approximately $600.

Here are some key features of the UT FLEX FSAs:

Health Care Reimbursement Account

Dependent Day Care Reimbursement Account

What can be reimbursed?*

Medically necessary health care expenses, including dental and vision related expenses incurred and paid during your period of coverage. Expenses paid by insurance are not eligible for reimbursement.

Day care expenses that are necessary for you and your spouse (if married) to work or attend school full-time, such as child care services in a home, licensed day care, and adult day care. For children under age 13 or qualified disabled dependents.

How much can I contribute?

$15 minimum contribution per month. Total contributions cannot exceed $2,500 per plan year per employee for federal income tax filing purposes.

$15 minimum per month up to a maximum of $5,000 per plan year; or up to a maximum of $2,500 per plan year if married filing separate federal income tax returns

As soon as your first contribution is deducted from your pay and put into your account. Reimbursement can be made only up to your available account balance.

Last Day to Incur Expenses

November 15 after the end of the plan year

August 31 (Last day of the plan year)

Claim Filing Deadline

November 30 after the end of the plan year

November 30 after the end of the plan year

*A detailed list of eligible and ineligible expenses is available at www.utflex.com .

Important Information about UT FLEX

To qualify as a tax-exempt plan, the UT FLEX flexible spending accounts must comply with all applicable Internal Revenue Service requirements including:

"Use it or lose it."

These UT FLEX spending account plans are “use it or lose it" plans. Any amounts you do not use throughout the plan year (and during the grace period for health-related expenses) will be forfeited, so it is very important to plan carefully.

If you plan to use a combination of the UT FLEX DCRA and the “Credit for Child and Dependent Care Expenses” on your federal income tax return, the amount you deposit in your DCRA will offset dollar-for-dollar the amount of expenses you are eligible to claim as a tax credit on your federal income tax return. You should carefully review the benefits of the federal income tax credit with the benefits of the UT FLEX DCRA. If you are not sure how this may impact you, consult your personal tax advisor before making your elections.

Plan Carefully-Practical Tips

Any amount left in your account after the claims run-out period (August 31 for DCRA and November 15 for HCRA) will be forfeited.

You can only make changes to your FSAs during annual enrollment or for very restricted change of status events.

Make sure you enroll in the correct account type--DCRA is for day care, HCRA is for health care expenses like doctor appointments, dental procedures, medications, and eye exams.

Monies cannot be exchanged between account types.

If your dependent is turning 13 during the plan year and is not disabled, their day care or camp expenses will not be eligible once they turn 13.

The IRS maximum amounts for contributions to dependent day care accounts are based on a calendar year (January 1 through December 31) and the limits apply to the entire family. Your paycheck contributions are tracked by UT FLEX and your employing institution on a fiscal year (September 1 through August 31) basis. You and, if applicable, your spouse, not UT FLEX or your employing institution, are responsible for making sure that you do not exceed the IRS limits during each calendar year.